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Indian Institute of Technology Kharagpur

Entrepreneurship Essentials
Assignment- Week 9
TYPE OF QUESTION: MCQ/MSQ
Number of questions: 10 Total mark: 10 X 1 = 10
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QUESTION 1:
Arrange the following in the order of importance in the context of the success of a startup as
suggested by Bill Gross (most important first)
a. Team, Timing, Business model, Team
b. Team, Timing, idea, execution
c. Timing, Team, Idea, execution
d. Timing, Team, execution, Idea

Correct Answer: d

Detailed Solution:

Bill Gross gives many examples that timing was the key to their success. The second most
important aspect is the team who can execute even a poor idea into a successful business. The
third is the execution and then the idea.
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QUESTION 2:

What is meant by complementary skills? Choose the best answer.

a. A team of cofounders with different skills so that all the skills that are necessary for
executing the business are available.
b. A team with all the skillsets demanded by the concurrent industries so that a startup can
diversify into any domain of its choice without concern of technology.
c. The skillset complementary to that demanded by the changing technological landscape in
the market.
d. All the team members having all the skills similar to those demanded by the startup.
Correct Answer: a
Detailed Solution:
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To run a startup efficiently and effectively, several different skills are required such as expertise
in technology, market, finance, and operation. It is difficult, if not impossible for one person to
possess all the skills. Different team members may possess different skill completing the
requirements. This is referred to as complementary skills. It is desirable to have complementarity
of skills of the team members.
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QUESTION 3:
Which of the following is the correct interpretation of the construct ‘insurgent mission’ in the
context of entrepreneurship mentality?
a. You are in a blue ocean market and are on a mission to capture enough customers before
it turns into a red ocean.
b. You are on a mission to seize customers from competitors and acquire them by hook or
crook and no rule applies to you.
c. You are on a mission to wage a war with the customers and want to win them over at any
cost.
d. You are at war against competitors on behalf of the underserved customers and would not
stop until you win.
Correct answer: d
Detailed solution
The team is at war against its competitors on behalf of underserved customers. This means every
employee understands the company mission and can answer the big “why?”—“Why does the
company exist?” The insurgent mission is to remain focused on acquiring customers from
competitors. You must continue the revolution instead of retreating behind your walls to protect
your competitive position at the expense of your customers and employees.

QUESTION 4:
Which of the following is arranged in correct chronology in the context of applying Design Thinking:

a. Empathize, Ideate, Define, Prototype, Test

b. Empathize, Prototype, Define, Ideate, Test

c. Define, Empathize, Ideate, Prototype, Test

d. Empathize, Define, Ideate, Prototype, Test

e. Empathize, Ideate, Prototype, Define, Test

Correct Answer: d
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Detailed Solution:

The choice is obvious and an explanation is not required. Nevertheless, here are they: Empathize,
Define, Ideate, Prototype, and Test. Before embarking on development of a product or service, it
is essential to define the problem thoroughly which is possible only through empathy with the
target audience having the pain. After you empathize you are able to define the various contours
of the problem helping you to come up with many ideas. You choose the best among them and
begin to prototype because a prototype helps visualize the solution better. When the prototype is
ready, get it validated by customers/users and with the feedback come back to refine it.
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QUESTION 5:
Which of the following is not true?

a. Invention is the creation of new knowledge and innovation is the creation of new
knowledge as also the commercial application of the new knowledge for the
benefit of the relevant people.

b. Innovation is creating new knowledge, whereas invention is putting the invention

c. Innovation is how the entrepreneur either creates new wealth-producing resources

d. A leap of faith is an assumption of a future solution without any supporting data

Correct Answer: b

Detailed Solution:

Invention is creating new knowledge, whereas innovation is putting the invention into public use.
(The opposite of what is stated in the question).

QUESTION 6:
Which of the following is not an essential component of the elevator Pitch or speech?
a. An elevator pitch should be no longer than 60 seconds, ideally 20 to 30 seconds long
b. In an elevator pitch, you should explain why you think that you have a winning proposition,
what is your USP and what are your competitive advantages.
c. Speak as fast as you can since the time is short and you want to convey as much information
as possible.
d. Remain open to an interjection by your audience at any time.
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Correct Answer: c

Detailed Solution:

Do not speak too fast. Remain mindful of clarity of what you are trying to convey, change the
pitch of your voice. Don’t do rambling. Always remain ready for interjections.

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QUESTION 7:
Which of the following is the correct interpretation of the construct ‘owners’ mindset’ in the
context of entrepreneurship?
A. The sense that the company is theirs and that the prosperity of the company is aligned
with their personal prosperity.
B. The sense that the company belongs to them and they should try to take away as much
from the company as possible.
C. One is as responsible as the owners and would take all the actions that are for the best
interest of the company.
D. To avoid bureaucracy and take immediate and appropriate action without waiting for
instructions from the hierarchy or the sense that it is someone else’s responsibility.

a. A, C, D
b. A, B, D
c. A, B, C,
d. All the options are part of the ‘owners’ mindset’.
Correct answer: a
Detailed answer
It is anything but selfishness. It does not have any negative connotation The correct choices are
A, C, & D.

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QUESTION 8:
Guy Kawasaki recommended
a. Twenty-minute presentation, ten slides, and minimum thirty font size
b. Twenty-minute presentation, thirty slides, and minimum ten font size
c. Thirty-minute presentation, twenty slides, and minimum ten font size
d. Ten-minute presentation, twenty slides, and minimum thirty font size
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Correct Answer: a

Detailed Solution:

Kawasaki advocated the 10-20-30 Rule of PowerPoint, which banks on the idea that a
presentation should have ten slides, last no more than twenty minutes, and contain no font
smaller than thirty points.
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QUESTION 9:
Which of the following is the correct interpretation of the construct ‘frontline obsession’ in the
context of entrepreneurship?
A. Customer focus and use all the tricks up their sleeves to acquire customers.
B. Take customer feedback to help the product development team understand what is to be
built to meet the gap in product features and serve the customer better.
C. It is a mindset among individual employees and teams to create an environment where
everyone feels valued for their contributions and is committed to the success of the
organization.
D. Try to understand every detail about customers’ response to features of the product, earn
customer advocacy, and loyalty, and not resort to the blame game for non-performance.
a. B, C, & D
b. A, & D
c. A, B, & C
d. B & D
Correct answer: a
Detailed answer
Companies should constantly translate strategy and organizational decisions into frontline
routines and behaviors in order to serve customers better and earn customer advocacy and
loyalty. They must avoid bureaucracy and take actions that are for the best interest of the
company.
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QUESTION 10:
For a particular company:
Sales: ₹ 50,000
Total annual variable cost: ₹ 40,000
Number of units produced and sold: 5,000
Total annual fixed cost: ₹ 2,00,000

How many units of the product the company must produce and sell to make a profit of 2,00,000?

a. 1,00,000
b. 2,00,000
c. 3,00,000
d. 4,00,000
Correct Answer: b

Detailed answer:
BEP = Fixed cost / (selling price – unit variable cost) = 2,00,000/(50,000/5,000 – 40,000/5,000)
= 1,00,000 units.
Therefore, if the company produces and sells 1,00,000 units, there will be no profit or loss.
Beyond 1,00,000 units, for every 1 unit, the company makes a profit of 10 – 8 = ₹ 2
To make a profit of ₹ 2,00,000 the company has to manufacture and sell a total of (1,00,000
+2,00,000/2) units = 2,00,000 units.

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